Status quo on Choithram foundation

An out-of-the-court settlement in the protracted Choithram legal battles sought to retain the status quo on the assets held by the Choithram International Foundation (CIF).

Putting to rest a spate of law suits and complex legal tangles surrounding the dispute between the two sets of heirs of the late Thakurdas Choithram Pagrani, the new settlement decided against dividing the CIF assets between the two families, and also acknowledged that the Foundation will continue to control these assets.

Elaborating on the new development, Samir Ja'afar, advocate representing the late Pagrani's Sierra Leone family told Gulf News that both sides realised the importance of preserving CIF as was desired by the late Choithram before his death.

"It is not true that both sides compromised to divide the assets of CIF between the two families, rather, decided to comply with father's desire," Samir explained.

However, Dh50 million has been paid to the Indian heirs as relief to cover the expenses they have incurred in pursuing the protracted legal exercises over the years.

More importantly, the shares held by CIF in the holding company, T. Choithram & Sons, will remain in the name of CIF itself, as part of the settlement.

While Samir Ja'afar of Ja'afar Alwan, Al Jaziri & Associates represented Choithram's Sierra Leone family, Abdul Rahman Luttah & Abdul Hamid Gharib represented the Foundation, and Habib Al Mula & Associates and Ziad Galadari represented the Indian family (first wife and family) in arriving at the out-of-the-court settlement.

The law suits were filed in various courts in India, Sierra Leone, UAE, British Virgin Islands (BVI), UK etc and the proceedings were at different stages while the settlement was arrived at.

The legal tangles were so complicated that there were cases filed even challenging the very validity of Choithram's second marriage. In fact, the multi-million-dollar CIF was formed as per the wish of Choithram before his death on March 19, 1992, after setting aside sufficient funds for both families.

Though there was a 'gift deed' seeking the formation of the foundation, Choithram passed away before the finalisation of the deed, resulting in the deed being challenged on its legal validity, by Choithram's Indian wife.

"Choithram always believed that the enormous wealth accumulated from businesses run from different parts of the world was only possible with the blessing of God and hence a good portion of the same should go to charity," Samir Ja'afar told Gulf News.

And that's why he set up several charity institutions the world over, especially in Indore, his hometown in India, he added.

Pagrani, born in India, built up a highly successful business spread over different parts of the world.

After making generous provisions for his wife and six daughters from the first marriage, he set up a flourishing business in Sierra Leone and founded a second family of wife and eight children, including two sons who actively managed the business.

As the business spread throughout the world, Pagrani brought operations of his units within four umbrella companies, under which the entire business was organised since 1989.

Three years later, Choithram Pagrani died in London.